Cimpi v. Dole

739 F. Supp. 25, 36 Cont. Cas. Fed. 75,987, 29 Wage & Hour Cas. (BNA) 1436, 1990 U.S. Dist. LEXIS 8346, 1990 WL 91790
CourtDistrict Court, District of Columbia
DecidedJune 5, 1990
DocketCiv. A. No. 90-1095
StatusPublished
Cited by1 cases

This text of 739 F. Supp. 25 (Cimpi v. Dole) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cimpi v. Dole, 739 F. Supp. 25, 36 Cont. Cas. Fed. 75,987, 29 Wage & Hour Cas. (BNA) 1436, 1990 U.S. Dist. LEXIS 8346, 1990 WL 91790 (D.D.C. 1990).

Opinion

ORDER

JOHN H. PRATT, Senior District Judge.

Before the Court is plaintiffs’ motion for a preliminary injunction. The matter has been fully briefed and, after a review of the record, we are satisfied that the motion may be ruled upon without a hearing. Defendant, in addition to opposing plaintiffs’ motion, has filed a motion to dismiss, and that motion is also ripe. For the reasons set forth herein, we deny plaintiffs’ motion for a preliminary injunction and grant defendant's motion to dismiss.

I. Background

Plaintiff William A. Cimpi is a government contractor whose presently debarred companies have in the past contracted to transport United States Postal Service cargo under various government contracts. Plaintiff William Wayman is an employee of Cimpi under Postal Service contract # 13731, which is scheduled to expire on June 30, 1990.1 Defendant is the Secretary of Labor (“Secretary”).

[26]*26In 1986, administrative proceedings were instituted against Cimpi under the McNamara-O’Hara Service Contract Act of 1965, 41 U.S.C. §§ 351-358 (1988) (“SCA” or “Act”), for wage and fringe benefit violations involving seventeen Postal Service contracts. Postal Service contract # 13731 was not among them. On March 12, 1987, after a hearing, the administrative law judge (“ALJ”) found that Cimpi had engaged in numerous wage and fringe benefit violations, and that he owed thirty-one employees a total of $10,126.12. The AU further concluded that no “unusual circumstances” warranted relieving Cimpi from the debarment sanction created under section 5(a) of the SCA, 41 U.S.C. § 354(a).

Cimpi did not appeal this finding, but the Department of Labor (“DOL”) moved to amend the decision to provide for the payment of additional back wages. On June 22, 1987, the ALJ issued an amended decision and order granting DOL’s request. Once again, Cimpi did not appeal, and on September 1, 1987, the Office of Administrative Law Judges notified the Administrator of the Wage and Hour Division (“Administrator”) that the amended decision and order had become final. Subsequently, by letter dated November 3, 1987, the Administrator forwarded Cimpi’s name to the Comptroller General (“Comptroller”) for placement on the list of ineligible (i.e., debarred) bidders. See 41 U.S.C. § 354(a) (Comptroller must “distribute a list to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated” the SCA). On December 24, 1987, the Comptroller placed Cimpi’s name on this list for a three year period, as required by the SCA. See id. (violators are ineligible for government contract awards “until three years have elapsed from the date of publication of the list containing” their names).

On June 28, 1988, six months after being placed on the list, Cimpi, through counsel, requested that the Administrator adjust his period of debarment so that it would commence within ninety days of the ALJ’s initial order of March 12, 1987, and thus expire on or about June 10, 1990. Cimpi relied on an SCA provision directing the Secretary, within “ninety days after” an ALJ’s decision that an individual has violated the SCA, to “forward to the Comptroller ... the name of [such] individual” for placement on the debarment list. Id. By letter dated September 1, 1988, the Administrator denied this request. The Administrator stated that the ninety day period was directory, not mandatory or jurisdictional, and that in any event Cimpi’s name had been forwarded “approximately within” that period. This latter conclusion was based on the fact that the AU’s decision did not become final until August 1, 1987, the date on which the period for appeal of the June 22, 1987, amended decision and order expired. Cimpi did not appeal the Administrator’s denial.

By letter dated February 14, 1990, the Postal Service notified Cimpi that, because of his status as a debarred contractor, Postal Service contract # 13731, scheduled to expire on June 30, 1990, would not be renewed. Cimpi did not appeal this decision.

On May 10, 1990, well over a year and a half after the Administrator denied Cimpi’s request for an adjustment, plaintiffs filed this action for declaratory, injunctive, and mandamus relief against the Secretary. They claim that the Secretary has wrongfully refused to change the termination [27]*27date of Cimpi’s debarment period from December 24, 1990, to June 10, 1990. In their present motion for a preliminary injunction, plaintiffs seek to compel the Secretary to reinstate Cimpi as an eligible government contractor pending a final decision on the merits. The alleged irreparable injury plaintiffs wish to avoid is the loss of Postal Service contract # 13731.

II. Discussion

In order to prevail on their motion, plaintiffs must demonstrate that they have “a substantial case on the merits.” Washington Metropolitan Area Transit Commission v. Holiday Tours, Inc., 559 F.2d 841, 843 (D.C.Cir.1977). This they have failed to do. First and most importantly, plaintiffs have not made any showing that they exhausted their administrative remedies prior to filing this action. Compare Federal Food Service, Inc. v. Marshall, 481 F.Supp. 816, 817 (D.D.C.1979) (prior to moving for preliminary injunction, contractor exhausted administrative remedies available for relief from debarment). Cim-pi had sixty days to file an administrative appeal of the Administrator’s September 1, 1988, denial of his request for an adjustment, see 29 C.F.R. § 8.7(b) (1989), yet he failed to do so. Plaintiffs’ counsel apparently was aware of this right of appeal, since he had appealed a similar decision in a different case earlier that same year. See White Way Trucking Inc. v. McLaughlin, 108 Lab.Cas. (CCH) f[ 35,060, at 45,607, 1988 WL 35373 (1988).2 Plaintiffs’ failure to lodge this appeal tolls the death knell for this entire action, and is a sufficient ground alone for granting defendant’s motion to dismiss. See McKart v. United States, 395 U.S. 185, 193-95, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969); Abney v. District of Columbia, 849 F.2d 1491, 1497 (D.C.Cir.1988); Klinestiver v. DEA, 606 F.2d 1128, 1130 (D.C.Cir. 1979).

Second, even if plaintiffs could overcome this obstacle, the SCA is highly unlikely ultimately to afford them the requested relief, i.e., termination of Cimpi’s debarment period in time for Cimpi to become eligible for renewal of Postal Service contract # 13731.

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Bluebook (online)
739 F. Supp. 25, 36 Cont. Cas. Fed. 75,987, 29 Wage & Hour Cas. (BNA) 1436, 1990 U.S. Dist. LEXIS 8346, 1990 WL 91790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cimpi-v-dole-dcd-1990.